Incoterms 2020 in export documents: FOB, CIF, EXW on quotes and invoices
Incoterms define how buyer and seller split freight, insurance, and risk transfer. Nearly every quotation, PI, and CI states “Incoterms + place/port”, e.g. FOB Shanghai, CIF Rotterdam. Wrong terms cause freight disputes or buyer clearance issues.
Most common for exporters
EXW: ex-works — buyer carries most transport. FOB: on board at port — seller exports, buyer pays ocean freight. CIF: cost, insurance, freight to destination port. DAP/DDP: delivered at place — seller carries more last-mile duty. Match the term with PI payment timing and actual logistics.
How to write on documents
Standard form: term + named place, e.g. “CIF Hamburg, Germany” or “FOB Ningbo, China”. Avoid bare “CIF” without port. Incoterms 2020 differs from 2010 in places — confirm version with regular buyers. Enter once on the deal in TradeDocs; all five documents show the same terms.
Link to freight and insurance docs
Under CIF the seller usually insures; under FOB the buyer insures. Whether CI value includes freight depends on term and quote structure. For L/C or buyer accounting, terms must align with contract, B/L, and insurance.